“Natural gas futures in New York tumbled the most in more than three years on forecasts of moderating temperatures that may reduce demand for the power- plant fuel.
Gas dropped as much as 9 percent after Commodity Weather Group LLC in Bethesda,Maryland, said colder-than-average weather in most of the lower-48 states this week would give way to above-normal temperatures from Jan. 7 through Jan. 11. The low in New York on Jan. 9 may be 38 degrees Fahrenheit (3 Celsius), 11 higher than usual, according to AccuWeather Inc.
“We’re going to see some warm weather across the primary gas-consuming regions,” saidGene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “As we get into the new year without signs of sustained cold weather, the fundamental picture is going to force us lower.”
Natural gas for February delivery fell 12.5 cents, or 3.7 percent, to $3.226 per million British thermal units at 10:14 a.m. on the New York Mercantile Exchange. The intraday percentage decline was the most since Sept. 11, 2009. The futures have risen 8 percent from a year ago. Trading volume was up 48 percent from the 100-day average at 10:15 a.m.
Gas slid to $3.05 in electronic trading, the lowest price since Sept. 26, before rebounding. A 900-contract sell order at 7:52 p.m. yesterday caused the “scary” drop, Drew Wozniak, vice president of market research and analysis at ICAP Energy LLC in Louisville, Kentucky, said in a note to clients today….”
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